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Oie_president_george_w_bush_and_b_2
President Elect Obama talks with President Bush in the Oval Office (Wikimedia Commons)

President Obama: A victory for health care?

After nearly two years of the presidential campaigns, countless pages have been written about President-elect Barack Obama’s health care plan and the possibility of reform. Now that
the U.S. has elected Obama and put Democratic
majorities in both the House and Senate, people are asking what this will mean for health care.

Heavy speculation has begun, and The Health Care Blog aims to be a useful junction of these diverse opinions and predictions. This page is an attempt to centralize this debate.

Readers respond to whether Obama’s win is a victory for health care

Thoughbubble

"More government-funded health care programs, which either means
higher taxes or greater deficits for lower quality health care. As government controls more and more of the health care system, they
will control more and more of my personal health choices (a la France
or Japan)." — M

"It probably means very little in reality. Recall all the hoopla about President Clinton’s health care plans which went nowhere. I think an Obama administration will find its hands tied by an
unstable economy which cannot support the increases in taxation
required for his health care ideas." — Brutus

"Well, personally I would love to see Obama practice the diversity theme
by enabling the states to have their own universal health care programs,
including state versions of Medicare." — Tom Leith

"I believe that the first step to improving the health care system is a
national mandate for self-reporting of quality and all-payer cost data
by providers of care and publication of national provider cost/quality
scorecards."–Health IT Wonkman

"Change and Hope are the two words and the essence of what Barack Obama
has offered to the populace. Yet within health care, we continue to
muddle along with the same old concept of financing which has been
patched so often, it is no wonder that there are more leaks developing," –Richard Ferriera

Election 08, Obama, Policy/Politics  | Permalink
| Matthew Holt
Comments
(40)

Despite Democratic control, major health reform still unlikely

With 258 House and 57 Senate Democrats, it’s almost certain that major health
reform will be passed, right? Actually, that was the number of Democrats Bill Clinton started off
with in 1993 and we know what happened to health care reform in that
Congress.

With similar Democratic majorities, I do not expect a major health
care reform bill like the one President-Elect Barack Obama called for
during the campaign in 2009 or 2010.

Continue reading "Despite Democratic control, major health reform still unlikely"

Obama administration, Policy/Politics, reform  | Permalink
| Matthew Holt
Comments
(17)

Health in an Obama world — what we know so far

When it comes to health care, there are a few
things we know about a President Obama. First and foremost, addressing challenges in U.S. health care will
require a multi-pronged strategy which brings stakeholders together.
The key health-aches to address will be:

  • Covering the uninsured
  • Stemming rising health care costs
  • Wiring the health information infrastructure and getting electronic health records into medical practice
  • Funding what works, and de-funding what doesn’t
  • Ensuring an innovative health discovery and commercialization environment.

This is not a one-man job, and Senator Obama knows that. He has
surrounded himself with a cadre of experts who understand these issues and are on the forefront of solutions. Here is a rundown of probably candidates for top health administration positions.

November  6, 2008 in Obama administration  | Permalink
| Comments (8)

The next president’s health agenda

A year ago, health care held a solid lead in the polls as the No. 1  concern of the American people. But by the time the Iowa caucuses
closed, and Barack Obama surged to his unexpected win, it was
supplanted by the economy.

Unlike some pundits who say the health care issue will be put on
the backburner for the first half of the next president first term, I
do not believe the nation will have that luxury. Curbing the growth of
health care spending will reassert itself as an issue next year because
it is key to restoring this nation to economic competitiveness.
American businesses are at a competitive disadvantage when they must
pay twice what companies in other countries pay (whether premiums or
taxes) to provide their workers health coverage.

The morning-after reality for the next president is that the U.S.
spends more on health care than any other nation on earth — 16 percent
of gross domestic product and rising. Yet nearly 50 million Americans
go without health coverage during the year, and in traditional markers
of national well-being — longevity and infant mortality — the U.S.
ranks below many former Communist bloc nations of Eastern Europe.

November  6, 2008 in Election 08, Policy/Politics, reform  | Permalink
| Comments (4)

Social solidarity is key to meaningful changes in health care

In his victory speech, President-elect Obama sounded that theme repeatedly, reminding his audience that he had been
elected “by young and old, rich and poor, Democrat and Republican,
black, white, Hispanic, Asian, Native American, gay, straight, disabled
and not disabled—Americans who sent a message to the world that we have
never been just a collection of individuals…”

In the recent past, some progressives have warned that liberals made
a mistake when they reached out to minorities, new immigrants, and
gays, “ignoring” the mainstream middle class. But in fact,
“mainstream” America is no longer one recognizable culture. It is fast
becoming a “magnificent mosaic.”

November  7, 2008 in Maggie Mahar, Policy/Politics, reform  | Permalink
| Comments (5)

Health care information technology in an early Obama Administration

When Obama takes office in January, the economy will be his first
priority, followed by the war in Iraq. Health care will follow as his
next major issue to address. What will he do?

I imagine
he’ll take a phased approach to ensuring all Americans have access to
health care. Given the change management needed to accomplish this, it
will take a while. However, Health care Information Technology
has broad bipartisan support and is his best strategy to reduce
health care costs, reimburse providers for quality instead of quantity,
and to ensure coordination of care. Here are my predictions for
health care IT in the first year of the Obama administration.

November  7, 2008 in Electronic Medical Records, Obama administration, Technology  | Permalink
| Comments (2)

Baucus unveils reform proposal with individual mandate

Senate Finance Committee Chairman Max Baucus’ unveiling of a health
reform proposal yesterday fed speculation about the possibility of
Democrats tackling health reform from the get-go of the new
Administration.

The Montana Democrat’s proposal is detailed in an 97-page "call to action" document.
In his letter of introduction, Baucus says the plan is not a
legislative proposal but his vision for policy reforms and the
political process.

Policy/Politics, reform  | Permalink
| Matthew Holt
Comments
(7)

Baucus’ proposal proves no consensus on key reform issues

Max Baucus will be a key player in the health care debate the next
two years. As chairman of the Senate Finance Committee he has
jurisdiction on many of the key issues including Medicare and provider
payment reform. He is also a leader in the true bipartisan spirit–something crucial to actually getting reform done.

If you read all 98 pages of his "Call to Action" it is clear there is no consensus on many of
the key details, what health reform would cost, the timetable for
implementation, or the source for paying for it.

Policy/Politics, reform  | Permalink
| Matthew Holt
Comments
(16)

Will Democrats Muck up Health Reform?

<a href="http://www.buzzdash.com/index.php?page=buzzbite&BB_id=130601">Will Democrats muck up health reform by infighting and power plays?</a> | <a href="http://www.buzzdash.com">BuzzDash polls</a></center>

Open Wide: Here comes the change you thought would never happen

The morning after the election, I posted a speculative blog in Health Affairs
on three possible scenarios for President-elect Obama’s implementing
health reform: folding it into a bold, ambitious emergency legislative
package (Complete the New Deal), carving funding out of the current
$2.5 trillion national health spend (Braveheart), and postponing
implementation until the economy recovers but taking steps now to
prepare for it (Wait/Lay the Groundwork).

At the time, the Wait/Lay the Groundwork option seemed 70 percent
likely. But with economic conditions worsening, I’m now convinced Obama
will probably opt instead for the Complete the New Deal option, and try
to implement health reform in the first 120 days of his Presidency,
before the health care industry “dragon” can even stir from its cave.

Let’s call Obama’s program The Real Deal. We can already see its
contours: an economic stimulus program including highway construction
and other state-directed public works, a green energy spending
initiative, emergency housing assistance including a foreclosure
prevention measure, an auto industry bailout, labor law reform and
income supports through tax credits for low income people.

Continue reading "Open Wide: Here comes the change you thought would never happen"

Economics, Election 08, Jeff Goldsmith, Marketplace, Obama, Obama administration, Policy, Policy/Politics, reform, The Industry  | Permalink
| Matthew Holt
Comments
(16)

Cost containment is the missing link in Obama’s health plan

Rt_obama_070116_sp_1

Barack Obama’s health care plan follows the Democratic template—an
emphasis on dramatically and quickly increasing the number of people
who have health insurance by spending significant money upfront.

The Obama campaign estimates his health care reform plan will cost
between $50 and $65 billion a year when fully phased in. This is highly doubtful. He assumes
that it will be paid from savings in the system and from discontinuing
the Bush tax cuts for those making more than $250,000 per year.

The Changes We Need

If the burst of new Democratic health care reform proposals is any
indication, a fresh breeze of the Obama campaign’s "Yes We Can"
optimism is blowing across the nation. Mr. Obama’s team is expected to
make health care one of its priorities. First out, though, was Senate
Finance Committee Chair Baucus (D-MT), who introduced an aggressive health care reform package
that builds on Mr. Obama’s campaign platform of cost controls and
extended coverage. Senator Kennedy (D-MA) and Representatives Dingell
(D-MI) and Stark (D-CA) are expected to offer proposals soon, and
undoubtedly there will be others.

The rub is that Congress’ old-guard lobbying system remains in place. Congress is awash in special interest contributions – $2.8 billion from 15,500 lobbyists in 2007
– that exchange money for influence over policy. When the Democrats
retook Congress two years ago, they did not substantively change the
lobbying rules.

So it is reasonable to ask whether a new day of governance in the
common interest is possible. Can we make progress on health care or on
any significant problem – climate change, education, energy policy,
finance, the social safety net – without addressing the underlying
problem of Congress’ receptiveness to special interest influence?

Brian Klepper, Marketplace, reform, The Industry  | Permalink
| Matthew Holt
Comments
(15)

Is health care a right?

The idea of health care as a “right” is
usually pitted against the idea of health care as a “privilege.” When people claim something as a “right,” they often sound
shrill and demanding. Then someone comes along to remind us that people
who have “rights” also have “responsibilities,” and the next thing you
know, we’re off and running in the debate about health care as a “right”
vs. health care as a matter of “individual responsibility.”

As regular readers know, I believe that when would-be reformers
emphasize “individual responsibilities,” they shift the burden to the
poorest and sickest among us. At the same time I’m not entirely happy making the argument that the
poor have a “right” to expect society to take care of them.

October  8, 2008 in Maggie Mahar, Policy/Politics  | Permalink
| Comments (71)

Maggie

If you have a right to health care, how much care?

By Our American love affair with
medicine — and in particular, medical technology — is all  tied up with our
fear of death, and a feeling  in some quarters, that “American
optimism” demands that to strive for immortality. We put such
emphasis on the individual, and the individual ego; how can we accept
that, someday, it will be extinguished?

We need to begin setting limits on that technology.
This is especially true if we are aiming for universal coverage. We need to recognize that covering everyone will cost more — much
more. Some well-meaning reformers have suggested that  once everyone
has access to care, we will save money because those who are now
uninsured or underinsured will receive preventive care. I have come to realize the
ugly truth: The uninsured die sooner than the rest of us. By leaving
a significant portion of the population poor, and uninsured, we save
money.

Continue reading "If you have a right to health care, how much care?"

Economics, Maggie Mahar, Policy  | Permalink
| Matthew Holt
Comments
(7)

The affordability factor must accompany discussions on health care coverage

Somehow, we’ve divorced the coverage/affordability question from the
cost question, and we pay for it – everyday. It shouldn’t be that hard
to accept the notion that it’s easier to
cover more people if health care costs are under control – and harder
to cover more people when they are not. But, most of the time, the
coverage debate has been only about coverage – and not about cost.

I’m
pretty sure there’s a morality play in here somewhere — that covering
people is a moral issue, while controlling the increase in health care
costs is an economic one. For some, arguing the rightness of providing
coverage is more compelling than engaging in the grind that comes with
discussing what to do about health care cost increases. But, the
simple fact remains that covering more people is intrinsically linked
to health care costs. If costs go up, coverage goes down – and vice
versa."

July 31, 2008 in Charlie Baker, Economics, Marketplace, reform  | Permalink
| Comments (42)

This isn’t the early 1990s

Several stories in today’s papers make it clear that the atmosphere
for health reform today truly is different than when the Clinton
Administration took over in the 1990s.

Here’s the bullet points in support of that thesis:

  • Obama selected veteran policymaker Tom Daschle to head up the Department of Health and Human Services, signaling he wants the former South Dakota Senator to head up reform efforts.
  • The Washington Post quoted  Sen. Ron Wyden
    (D-Ore.) saying, "Tom Daschle sees this as a once-in-a-lifetime opportunity. On the premier domestic issue of our time, the
    president-elect sees Tom Daschle with the skills and abilities to bring
    people together and get this over the finish line."

       
  • Marking a clear deviation from the past, the Association of Health Insurance Plans announced
    it would be willing to accept guarantee issue and community rating in
    exchange for a mandate requiring all people to buy insurance.
  • But Bob Laszewski provides WSJ readers with a reality check, "Talk is cheap on the front end of this thing," he told the Journal. "The
    rubber hits the road when that 1,000-page document comes out with
    specifics."

Policy/Politics, reform  | Permalink
| Matthew Holt
Comments
(10)

 

Will layoffs take us closer to single-payer?

Only a few months ago, Goldman Sachs was touted as an incredible
bastion of strength in the face of the credit crunch. Sure some other
institutions might have been suffering, but Goldman was savvy enough to
earn record profits in 2007. The average bonus was a whopping $600,000 per employee.
Then very suddenly Goldman and pretty much the whole industry
collapsed. The federal government has stepped in, and a partial
nationalization of the financial industry is underway. That’s not the
free market, it’s socialism.

While actual socialism was being carried out by the Republican
Administration in Washington, out on the campaign trail, McCain and
Palin were bashing Obama for allegedly socialistic policy proposals,
namely rolling back the Bush tax cuts for high earners. Obviously the
voters didn’t buy it.

Thanks to the credit crisis, companies and non-profits are starting
to lay people off. My inbox is filling up with messages from people
who’ve been given the sack and are searching for their next gig. Today
I received such a notice from a close friend at Goldman Sachs itself.

Continue reading "Will layoffs take us closer to single-payer?"

Economics, Policy/Politics  | Permalink
| Matthew Holt
Comments
(11)

CAP’s Blueprint for reform

The Center for American Progress (CAP) released a new “Blueprint for Reform” that focuses on how to fix the delivery system. This well-constructed
document and provocative forum was spearheaded by CAP CEO John Podesta (former Clinton White House Chief of Staff) and Jeanne Lambrew.

There are a few things that really show good progress in the
national debate. First, the fact that CAP has chosen this critical time
at the precipice of the national health care reform debate to focus
attention on reforming care as well as coverage will be helpful to
facilitating that discussion in 2009 policy debates (they, of course,
support coverage initiatives as well but those aren’t addressed in this
document).

Second, the quality and thougtfulness of the work and recommendations is high. Not surprising given the exceptional collection of authors with each chapter co-authored by a physician and a policy expert. These
include: Don Berwick, Tom Lee, Judy Hibbard, David Blumenthal, Bob
Berenson, Paul Ginsberg, Steve Schroeder, Dora Hughes, Chiquita
Brooks-LaSure, Karen Davenport, and Katherine Hayes.

Continue reading "CAP’s Blueprint for reform"

Joshua Seidman, Policy/Politics, Quality, reform  | Permalink
| Matthew Holt
Comments
(2)

Health care costs are crippling small businesses

Sinibaldi_2

I’ve got news for the folks doing the International Foundation of Employee Benefit Plans’ survey:
Smaller businesses, especially those defined as true small businesses
with two to 50 full-time employees, are strapped beyond belief when it
comes to paying ever-higher premiums for health care.

The survey’s results are NOT indicative of what is happening in the small group market (much like the Kaiser Family Foundation’s (KFF) annual survey on total premium and the portions shared by employees,
which always makes me laugh. The employees at my businesses would kill
to have the low percentage of total premium passed on to them that is
reported in the KFF survey).

Across the board, the 100+ businesses I represent, all of them two
to 50 full-time employees, have received increases between 13 percent
and 75 percent this year.  The average has been around 20 to 24
percent.  That’s on top of more than 15 percent average increases last
year, the year before, and the year before.

Continue reading "Health care costs are crippling small businesses"

Health Plans, Marketplace, The Industry  | Permalink
| Matthew Holt
Comments
(3)

America’s CEOs set priorities for Obama Administration

Bksobersmile

This past Monday and Tuesday, The Wall Street Journal convened an extraordinary conference of about 100 CEOs to develop and recommend issue priorities for the new Administration. (See the participant list here.)

This meeting brought together the nation’s industry power players.
Several Senators and Congressional representatives participated, as
well as Rahm Emanuel, the President-elect’s new Chief of Staff, and
others who advise Mr. Obama.

Based on their business’ core focus, the attendees were assigned into four major areas: 1) Finance and the US Economy, 2) Energy and the Environment, 3) American and the Global Economy, and 4) Health Care.

Then in the General Session that followed, the focus groups’
recommendations were incorporated into a final list and reranked by all
the participants. Here’s the graph showing the relative ranking of all issues.

Continue reading "America’s CEOs set priorities for Obama Administration"

Brian Klepper, Conferences, Economics, Quality, The Industry, Transparency  | Permalink
| Matthew Holt
Comments
(6)

 

Big pharma has big problems

Big pharma has big problems. The root cause is a lack of research and development productivity, which means a dearth of new products to make up for
looming patent expirations. Something near half of big pharma’s
revenues will be threatened by generic competition within the next
three to four years, and that will radically change the face of the
industry.

The R&D productivity problem isn’t exactly new. When I was at
the Boston Consulting Group (BCG) in the mid-90s we were already
talking about the “NCE gap,” which referred to the number of new
chemical entities that needed to be developed to justify pharma
companies’ valuations at the time. Back then, there was still a
possibility that new discovery tools would boost productivity and
prevent a collapse of the industry.

Continue reading…

An Open letter to Congresstional Budget Office: Keep it straight

I guess this is an open letter to CBO Director Peter Orszag and his colleagues at the Congressional Budget Office (CBO).

I have great respect for the CBO and that has been the case under different majorities–Democratic and Republican. Never more than now.

The CBO is intended to be non-partisan and objective. They provide the information and estimates the Congress needs to complete the budget process.

When it comes to health reform legislation, their job is to "score" the proposals. That means on proposed legislation — big and small — they are the official estimate on what it would cost or what its provisions are estimated to save.

Continue reading…

Two Mea Culpas

Here’s an attempt to recover from two mistakes yesterday. My post on our dismal prospects for real health care reform prompted a couple readers – thanks to Hal Andrews and Fred Goldstein – to take me to task for suggesting that lobbying ought to be abolished.

And Barry Passett – who was a lot closer to the events in question than I was – pointed out that I misstated the reason that the Clinton’s reform effort was killed, and in doing so over-simplified the issue.

I wanted to put my clarifications into a post rather than a comment, to give them the attention they deserve. And I’ve revised yesterday’s post to reflect the corrections.

Continue reading…

The Changes We Need

These are, as the Chinese curse reputedly called them, interesting times.

If the burst of new Democratic health care reform proposals is any indication, a fresh breeze of the Obama campaign’s "Yes We Can" optimism is blowing across the nation. Mr. Obama’s team is expected to make health care one of its priorities. First out, though, was Senate Finance Committee Chair Baucus (D-MT), who introduced an aggressive health care reform package that builds on Mr. Obama’s campaign platform of cost controls and extended coverage. Senator Kennedy (D-MA) and Representatives Dingell (D-MI) and Stark (D-CA) are expected to offer proposals soon, and undoubtedly there will be others.

The rub is that Congress’ old-guard lobbying system remains in place. Congress is awash in special interest contributions – $2.8 billion from 15,500 lobbyists in 2007 – that exchange money for influence over policy. When the Democrats retook Congress two years ago, they did not substantively change the lobbying rules.

So it is reasonable to ask whether a new day of governance in the common interest is possible. Can we make progress on health care or on any significant problem – climate change, education, energy policy, finance, the social safety net – without addressing the underlying problem of Congress’ receptiveness to special interest influence?

Continue reading…

Moody’s predicts winners & losers in Obama health reform

Moody’s, the credit rating agency, offers their post-election impressions in their special comment, "U.S. Healthcare Industry: Credit Implications of the U.S. Election."

Barack Obama’s campaign roughed out principles for health reform across three issue areas:

  • Access and affordable health care
  • Cost reduction
  • Public health

Moody’s took these as lenses over the state of health care in the U.S. to predict how these principles could play out in an Obama administration.

Promoting access to health care in the U.S. could be a positive for hospitals and medical device manufacturers, whose sheer volumes of patients would increase and uncompensated care and bad debt be reduced. On the downside, though, addressing cost containment through reducing reimbursement would be a negative for hospital finances. The net of lower payments coupled with higher volumes remains to be seen. Still, Moody’s says that the overall impact on hospitals, providers and clinical services will be generally credit positive.

Continue reading…

Are Hospitalists Recession Proof?

Robert_wachter

Hospitals aren’t the first businesses hurt when the economy sours, but they get hurt nonetheless, as an article in last week’s NY Times points out. But hospitalists have never lived through a massive downturn. What happens to them when the economy tanks?

Let’s start with hospitals. Unlike new cars and Starbucks drinks – “discretionary” purchases (though I really do need my morning mocha!) that tend to dematerialize when household budgets tighten, hospitals are likely to get busier in tough times. We’re already seeing people having to choose between their statin and their supper – some of them will end up in our Emergency Departments. Folks who lose their jobs may lose their health insurance, and with it their access to primary care and prevention. They too may ultimately pay the price in hospital admissions for out-of-control diabetes or hypertensive heart failure.

The bottom line is that people will keep getting sick, no matter where the Dow is. In fact, they may get sicker as the economy worsens, and when they do, they’ll end up on our doorsteps.

But volume and profitability don’t march hand-in-hand, and in difficult economic times they tend to march in opposite directions. The problem is captured by that old ironic lament: “We lose money on every case but make it up on volume.” As government budgets tighten, Medicaid and Medicare cuts are inevitable. Beth Israel Deaconess CEO Paul Levy estimates that Medicaid cuts in Massachusetts will cost his hospital 7 million dollars this year, cutting his operating margin nearly in half. These payment cuts, coupled with more patients with no insurance at all, mean that more beds will be filled with no- or poor-paying patients, hammering our hospitals’ bottom lines.

Hospitals live off sources of income other than clinical revenues, but these too will be squeezed. Philanthropic dollars – a crucial fuel source for hospital improvements – are drying up, as the “B” in billions in certain trust funds gets replaced with an “M”. Many hospitals are finding that the bonds they counted on to finance their new Cardiac Wing are no longer available or affordable (though here in California the voters thankfully passed significant hospital construction bond measures, including one to rebuild San Francisco General Hospital and another for statewide Children’s Hospital construction).

Finally, in academic hospitals, research dollars have nowhere to go but down, as NIH budgets are cut and the endowments of research foundations dwindle like your 401(k).

Overall, its not a pretty picture for the average hospital. But at least people are buying what we’re selling, even if they’re not paying us enough. If you’re in the hospital business and getting depressed, think about what it must feel like to be at GM.

Now let’s turn to hospitalists. Since hospitalists earn most of their pay (50-80%, on average) from clinical billings, these dollars will go down for all of the above reasons. But the key variable is the other 20-50%, which generally comes from support payments from hospitals. If you’re a hospitalist, you can bet that your hospital, pleading poverty, will try to cut this portion. And it won’t be an idle plea:  they have only so much money to go around and they can’t cut nursing salaries, already-pledged construction budgets, or any number of other fixed costs.

Sounds like hospitalists are in for a tough ride. But not so fast…

Managed care – which got de-fanged over the past decade when the public came to associate its cost-cutting with poor quality – is likely to get re-fanged, with increasing pressure to shorten LOS and decrease hospital costs. Many hospitals look to their hospitalists to help improve their throughput, and there is strong evidence that they are right to do so. Primary care physicians will be busier than ever in the office and even less likely to come to the hospital, creating further hospitalist demand. Surgeons will want to spend more of their time in the OR, increasing their desire for hospitalist co-management. The Institute of Medicine will soon release a report on housestaff duty hours, and Those-In-The-Know are predicting further ratcheting down, perhaps abolishing the still-legal 30-hour overnight shifts.

Meanwhile, the pressure to improve quality and safety continues to grow, with more public reporting, regulatory oversight, and pay-for-performance/no-pay for no-performance. The measures will also become more diverse and complex, making them harder to “game” and increasing the pressure to truly transform the care delivery process. Hospitalists are likely to be critical to the success of these efforts.

All in all, hospitalists remain in an enviable position to weather the budgetary storms. In many organizations (including mine), hospitalists now help care for over 50% of the inpatient census, and make up a wildly disproportionate fraction of leaders in quality, safety, IT, and medical education. The market for hospitalists remains uber-competitive – hospitals recognize that an unhappy hospitalist can leave work on Friday and have a new and desirable job across town on Monday… assuming that the competing hospital doesn’t need to fill a weekend shift! In other words, the negotiating position of hospitalists remains strong, even if they’re vying for a share of a shrinking pie.

My own feeling is that we should accept our share of any shared pain. If budgets are being cut across our institution, we should participate in reasonable belt tightening. But my usual admonition to hospitalists remains unchanged: We and our programs simply must be – and must be seen to be – indispensable. Hospitalist leaders need to argue that cuts that are too draconian are not only not in their own interest, they are not in the hospital’s interest. These arguments should be data driven and respectful – it is always a good idea to try to put oneself in the shoes of the person on the other side of the table to understand his or her predicament, and to search for win-win opportunities.

Finally, if hospitals believe that other organizational models might be successful in performing certain functions at an acceptable quality at lower cost (such as using NPs or PAs instead of hospitalists on certain services), I urge them to give it a try. A field like hospital medicine – whose raison d’être was “value improvement” over traditional models of inpatient care – can’t fight efforts to try other ways to achieve the same ends, at least not without a heavy helping of hypocrisy. In my experience, in institutions with strong hospitalist programs, senior leaders recognize the model’s value and will be highly reluctant to muck with it. But there is nothing wrong with a little experimentation, as long as the results are measured and acted upon.

It will be a rough patch for everybody, and hospitalists will be no exception. But if you run a hospitalist group, the pain your group experiences will be attenuated if you’ve made yourselves indispensable and have demonstrated that you are great stewards of resources, inveterate problem solvers, and model organizational citizens.

If you haven’t, yesterday was a good time to get started.

Baucus’ proposal proves no consensus on key reform issues

Max Baucus will be a key player in the health care debate the next two years. As chairman of the Senate Finance Committee he has jurisdiction on many of the key issues including Medicare and provider payment reform.

He is also a leader in the true bipartisan spirit–something crucial to actually getting reform done.

Last week, he released a 98-page white paper, "Call to Action–Health Reform 2009."

Reading the executive summary, which given the news stories I have read is about all the press has looked at, the Baucus outline is pretty much Barack Obama’s health reform plan. Obama’s campaign health plan is 18 pages long and Baucus has tried to take it a distance further with 80 more pages.

Continue reading…

“Spread the Wealth” Controversy Hits Doctors

By now you know that Senator Max Baucus (D-MT) has offered a “Call to Arms” for health care reform by way of a 98-page policy document. There is much to think about in Baucus’ proposal, so you might have missed the section where he talks about increasing payments to primary care providers at the expense of compensation for specialists. But in the future, keep your eyes peeled for developments around this proposition—because supporting primary care is going to be a complex and controversial undertaking.

Baucus rightly recognizes that primary care is “undervalued” in our health care system. The Medicare reimbursement schedule—which is the model for private insurers rates—pays a lot more for removing a wart than it does, say, for talking to patients about their medications. Doing something to a patient (procedural care) is compensated much more than is doing something with a patient (cognitive care). The result is that generalists, including family practitioners, internists, primary care providers (PCPs), geriatricians and palliative care specialists make a lot less than proceduralists.

Today the average annual salary of a radiologist is $354,000, and at the high end they make $911,000. Orthopedic surgeons pull in $459,000 to $1.352 million; cardiovascular surgeons average $558,719 to $852,000. By contrast, internists report average salaries of $176,000; after years of experience, they can hope to make $245,000. In the middle of her career, the typical pediatricians can expect to earn $175,000; later, she may move up to $271,000. The average family practitioner may gross $204,000, at the high end he can look for $299,000.Continue reading…

Battling MRSA with transparency

Two weeks ago, I made an emergency trip home to Minnesota because my grandmother fell ill. She went to the emergency room on a Sunday night, complaining of fatigue and shortness of breath.

The emergency physician diagnosed her with pneumonia and admitted her for the night. Two days later, she was transferred to the intensive care unit and put on a ventilator. My grandma is only 74, healthy and energetic. Her rapid decline shocked my family.

My grandma, however, had not been taking good care of herself since her husband died three weeks earlier. He had many health issues, but at the end, died of MRSA pneumonia. My grandmother slept by his side, caring for him daily during his last days.

No one from the nursing home hospice program or the hospital warned my grandma about the seriousness of this drug-resistent staph infection. No one suggested she take precautions to protect herself or that she be tested as a carrier.

Continue reading…

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